Helios Energy bolstered its Presidio project in Texas with a $1.5 million placement, confirming robust oil and gas shows from recent drilling and identifying prime conventional and unconventional drilling targets.
- Raised $1.5 million via share placement
- Confirmed 2,000-foot oil and gas column at Presidio
- Identified five conventional and a 15,500-acre unconventional drilling sweet spot
- Plans underway to farm-out drilling of key prospects
- Installed production facilities at Presidio 141#2 well site
Capital Raise Supports Working Capital and Growth Plans
Helios Energy Ltd (ASX:HE8) secured approximately A$1.5 million through a placement of over 500 million shares priced at $0.003 each during the June quarter. This capital injection, earmarked for working capital, complements the extinguishment of $100,000 in convertible note debt via share issuance, effectively strengthening the company’s balance sheet. At quarter-end, Helios held A$1.73 million in cash, providing a buffer as it advances its Texas oil and gas projects.
Robust Drilling Results Confirm Significant Hydrocarbon Presence
The Presidio 52#1 well, drilled to 8,806 feet, encountered a thick 2,240-foot oil and gas column spanning the Ojinaga Formation and Eagle Ford Shale. Helios reported very good to excellent oil and gas shows throughout these formations, with gas isotope analysis indicating wet gas ratios consistent with oil-associated gas. This follows successful oil production from all four wells drilled by Helios in the Presidio project area, reinforcing the resource’s potential.
Targeting Conventional and Unconventional Plays with Farm-In Strategy
Technical reviews by W.D. Von Gonten Engineering LLC delineated five conventional oil and gas plays within the project, including the San Carlos Sands and Buda Limestone. Two prime prospects, Proposed Location Marshall and Croft, have been costed for drilling, with Helios initiating a farm-in joint venture process to attract partners for vertical well drilling. Concurrently, a 15,500-acre unconventional “sweet spot” comprising the Ojinaga Formation and Eagle Ford Shale has been identified for horizontal drilling, with a similar farm-in process underway.
Infrastructure and Production Facilities in Place
Helios maintains 7,238 leased acres in Presidio County, Texas, with well access via a 25-mile formed road off the US-90 highway. Production infrastructure includes a 3-phase separator, oil and water tanks, and flare stack installed at the Presidio 141#2 well site, which also services the nearby Quinn Creek 141#1 well. Crude oil is trucked to the El Paso refinery, 170 miles away, while all rig and supply needs are sourced from the Permian Basin hub 250 miles north.
Corporate Changes and Governance
Post-quarter, the company saw the resignation of Managing Director Philipp Kin, who also stepped down from the board. Related party payments during the quarter totalled A$25,000, covering director fees and salaries. The company continues to navigate its growth phase with a lean corporate structure and focused operational execution.
Bottom Line?
Helios Energy’s blend of solid drilling outcomes and fresh capital positions it to progress farm-in discussions and unlock value from its Texas acreage, but partner commitments will be crucial to advancing drilling plans.
Questions in the middle?
- Which farm-in partners will Helios secure for the conventional and unconventional drilling targets?
- How will production from the Presidio wells scale with new drilling and infrastructure upgrades?
- What impact will recent leadership changes have on the company’s strategic direction?